California Code of Regulations
Title 14 - Natural Resources
Division 2 - Department of Conservation
Chapter 4 - Development, Regulation, and Conservation of Oil and Gas Resources
Subchapter 2 - Environmental Protection
Article 1 - General
Section 1753 - Cost Estimate Report Requirements

Universal Citation: 14 CA Code of Regs 1753

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) The operator of one or more wells that have not been properly plugged and abandoned, according to the Division's records, shall submit a Cost Estimate Report to the Division according to the due dates specified in section 1753.1.

(b) The Cost Estimate Report shall include all of the following:

(1) A Well Abandonment Cost Estimate for each well that has not been properly plugged and abandoned, according to the Division's records;

(2) A Production Facility Decommissioning Cost Estimate for each production facility that has not been decommissioned, according to the Division's records;

(3) A Site Remediation Cost Estimate for the site of each well that has not been plugged and abandoned, according to the Division's records, and the site of each of production facility that has not been decommissioned, according to the Division's records; and

(4) A Cost Estimate Summary.

(c) When conducting a Well Abandonment Cost Estimate:

(1) For each onshore well, the operator may use Well Abandonment Cost Estimate Method 1, as specified in section 1753.2, or Well Abandonment Cost Estimate Method 2, as specified in section 1753.3.

(2) For each offshore well, the operator shall use Well Abandonment Cost Estimate Method 2, as specified in section 1753.3.

(d) When conducting a Production Facility Decommissioning Cost Estimate:

(1) For each production facility attendant to an onshore well, the operator may use Production Facility Decommissioning Cost Estimate Method 1, as specified in section 1753.2.1 or Production Facility Decommissioning Cost Estimate Method 2, as specified in section 1753.3.1.

(2) For each production facility attendant to an offshore well, the operator shall use Production Facility Decommissioning Cost Estimate Method 2, as specified in section 1753.3.1.

(e) When conducting a Site Remediation Cost Estimate:

(1) For each onshore well, the operator may use Site Remediation Cost Estimate Method 1, as specified in section 1753.2.2, or Site Remediation Cost Estimate Method 2, as specified in section 1753.3.2

(2) For each offshore well, the operator shall use Site Remediation Cost Estimate Method 2, as specified in section 1753.3.2.

(3) For each production facility attendant to an onshore well, the operator may use Site Remediation Cost Estimate Method 1, as specified in section 1753.2.2, or Site Remediation Cost Estimate Method 2, as specified in section 1753.3.2.

(4) For each production facility attendant to an offshore well, the operator shall use Site Remediation Cost Estimate Method 2, as specified in section 1753.3.2.

(f) A Cost Estimate Summary shall provide the total estimated costs from all of the operator's combined Well Abandonment Cost Estimates, combined Production Facility Decommissioning Cost Estimates, combined Site Remediation Cost Estimates, and the estimated cost from all of those estimates combined.

(g) The Cost Estimate Report, including each Well Abandonment Estimate, each Production Facility Decommissioning Cost Estimate, each Site Remediation Cost, and the Cost Estimate Summary shall be submitted to the Division in a digital tabular format.

(h) The Well Abandonment Cost Estimates, Production Facility Decommissioning Cost Estimates, and Site Remediation Cost Estimates shall be organized by field and lease.

Note: Authority cited: Sections 3013 and 3205.7, Public Resources Code. Reference: Sections 3011, 3106 and 3205.7, Public Resources Code.

Note: Authority cited: Sections 3013 and 3106, Public Resources Code.

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